OFCA clears HKBN’s New World buyout

1 Apr 2016

Hong Kong’s Office of the Communications Authority (OFCA) has announced that it will not be opening an investigation into the proposed acquisition of New World Telecom by triple-play fibre provider Hong Kong Broadband Network (HKBN). The deal, first announced in February, will see HKBN paying around HKD650 million (USD84 million) to buy New World Telecom, which offers a range of fixed line and broadband services in both the business and consumer segments. In a statement OFCA said that it ‘was of the view that the Acquisition was unlikely to have the effect of substantially lessening competition in the relevant telecommunications service markets in Hong Kong, and, accordingly, decided not to commence an investigation into the Acquisition’. HKBN previously announced that the buyout will be financed by a five-year loan facility of up to HKD700 million, underwritten by JPMorgan Chase Bank.

Hong Kong, Hong Kong Broadband Network (HKBN), New World Telecom (now HKBNES)